Cape Breton University profs say there's no financial crisis

The president of the Cape Breton University Faculty Associationsays the universityis not in financial difficulty,and there'sno need for managers to invoke the layoff clause in thecollective agreement.

The clause was invoked last monthand the faculty association, which represents professors, instructors, librarians and other teaching staff, has said it could mean layoff notices as early as April.

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The associationrecentlyhired two accountants with the Asper School of Business at the University of Manitoba to analyze Cape Breton University's finances.

Scott Stewart, the association's president,saidthereport shows "CBU is in good financial standing" and was "financially stable and healthy over the last number of years."

He saidthe operational budget showed annual surpluses.

Projected deficit

But the university'svice-president of finance, Gordon MacInnis, said CBU isprojecting a $5-million deficit and must prepare.

"Layoffs are something that we will try to avoid if we can," he said.

Salary and wages, however,make up 75 per cent of the university'soperating budget.

"If it proves that we can't avoid layoffs,then of course, we will have to take that road,"warnedMacInnis.

Enrolment is down at CBU due to the loss ofa large cohort of students from Saudi Arabia and the decline in the number of local high school graduates.

MacInnissaidCBU has to adjust for that so it doesn't end up in financial trouble.

Stewart, however, saida cut in faculty will result in reduced programs, which in turn will hurtrecruiting and enrolment even more.

"What the university is doing is considering layoffs for a projected deficit in the future," he said."We think that puts the cart before the horse."